Introduction

For many Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), agricultural land in Punjab is not merely a financial asset but an ancestral legacy. However, agricultural land is governed by stricter laws than residential or commercial property, and NRIs frequently face disputes due to distance, lack of supervision, and misuse by occupants or relatives.

At Sachar Law Firm, a significant number of disputes handled in Ludhiana and surrounding districts involve NRI-owned agricultural land, often after years of neglect or blind trust. This blog explains the legal position, risks, and remedies for NRIs dealing with agricultural land in Punjab.

Can NRIs Purchase Agricultural Land in Punjab?

As per Indian law and RBI guidelines:

• NRIs and OCIs are not permitted to purchase agricultural land in India, including Punjab.

• This restriction applies regardless of the size or location of land.

However, agricultural land can be legally owned by NRIs if acquired through:

• Inheritance

• Succession

• Will

Once lawfully inherited, ownership rights are fully recognised.

Can NRIs Sell Agricultural Land in Punjab?

Yes, NRIs who own agricultural land through inheritance may sell it, but with restrictions:

• Sale can be made only to a resident Indian eligible to purchase agricultural land under Punjab laws.

• Sale to another NRI or foreign national is generally prohibited.

Before sale, legal verification of title, revenue records, and possession is essential to avoid future litigation.

Importance of Revenue Records in Punjab

Punjab follows a detailed land revenue system. For NRIs, incorrect or outdated records are the biggest cause of disputes.

Key documents include:

• Jamabandi (record of rights)

• Girdawari (cultivation record)

• Mutation entries

Improper mutation often leads to:

• Illegal possession

• False ownership claims

• Sale without consent

Regular verification and correction of records is crucial.

Common Disputes Faced by NRIs in Agricultural Land

NRIs commonly face:

• Illegal occupation by relatives or third parties

• Unauthorised leasing or cultivation

• Claims based on long possession

• Forged agreements or sale deeds

• Batai (share-cropping) misuse

Delay in action often strengthens the illegal occupant’s position.

Power of Attorney Risks in Agricultural Land

NRIs frequently rely on Power of Attorney (POA) to manage land. While legally permissible, POAs are often misused.

Important precautions:

• POA must be specific and limited

• It should be properly stamped and registered

• Open-ended authority should be avoided

Many disputes arise when POA holders exceed their authority.

Tenancy and Cultivation Issues

Allowing cultivation without documentation is risky. Even though tenants cannot become owners merely by possession, long-term unauthorised occupation creates practical difficulties.

Written agreements, periodic supervision, and legal oversight are essential.

Inheritance and Family Disputes

Agricultural land is frequently jointly owned. Absence of:

• Clear partition

• Registered family settlement

• Will

leads to disputes, especially when some heirs live abroad. NRIs must take timely steps to assert and protect their share.

Legal Remedies Available to NRIs

Indian law provides multiple remedies:

• Civil suits for possession or partition

• Injunctions against illegal sale or construction

• Revenue proceedings for correction of records

• Criminal action in cases of fraud or forgery

NRIs can pursue these remedies without being physically present by appointing authorised representatives.

Punjab-Specific Challenges

In Punjab:

• Agricultural land disputes are often intertwined with revenue manipulation

• Informal family arrangements are common

• Encroachments increase over time

Legal intervention at the right stage prevents irreversible damage.

Conclusion

Agricultural land in Punjab demands greater legal vigilance, especially for NRIs and OCIs living abroad. While ownership rights are protected by law, distance and delay often weaken enforcement.

Regular verification of records, cautious delegation of authority, and timely legal action are essential to protect agricultural land from disputes and illegal possession. Early legal guidance ensures that ancestral land remains a source of security, not prolonged litigation.